Joint Tenancy vs Tenants in Common

bloke91

Hi,

I have inherited my late father’s house along with my two sisters.

The house had never been registered with the land registry and once the grant of probate has been issued, the house is to be registered in mine and my sisters names.

Once registered and probate is complete, I am hoping my two sisters will allow me to buy there shares of the property.

In the meantime, I am thinking the house needs to be registered as tenants in comment and not joint tenancy.   That way in the event something happened to any of us, our shares would form part of the estate and could be left to our children in our wills etc.

Am I right? I would appreciate any thoughts or advice on this.

Thanks in advance.

greatcrested

Do not register it in the 3 joint names.

The Executers of your father's Estate can transfer it it direct from your father's name into yours. You undertake 1st registration.

At the same time, you pay your sisters the agreed amount (1/3rd of the Probate value each).

Slithery

Just pay the needed money into the estate and get the property registered solely in your own name from the get-go. There is no need to transfer it into all three names first.

bloke91

Thanks for the responses  so far.

The application has been submitted to the land registry based on registering in our three names.  

Land registry is waiting on grant of probate and confirmation if should be registered in joint tenancy or tenants in common.

How would you suggest proceed?

Slithery

Do your sisters currently own their own homes? If not then your way will cause them to lose all of their FtB privileges. There may also be CGT to pay when it is transferred solely in to your name.

xylophone

 You and your sisters have survived your father by any period specified in his will?  If so the bequests vest in you individually.

This means that were any or all of you to die before the house were transferred into the name(s) of  new owner(s), the share appropriate to each would become an asset of the estate of each.

https://www.co-oplegalservices.co.uk/media-centre/articles-jan-march-2019/what-happens-in-probate-if-a-beneficiary-has-died/

 Would it be possible to rescind the application to transfer into all three names?  Then the  executors can  sell  you the property from the estate and it can be registered in your name after you have transferred the necessary funds to the  executors' account.

bloke91

Yes they all own there own homes etc.

To clarify saying the ideal is as follows? 

1. Hold fire on current land registry application.
2. Wait until probate is completed.
3. Have the house valued.
4. Use my share of the cash from the estate to buy there shares of the property.


Apart from having to update the deeds/land registry twice. What benefit does the above provide vs proceeding as is and then transferring ownership into my name later if my sisters agree to me buying them out etc?

I would pay capital gains the same either way when and if I came to sell one day either way?

Are there any additional stamp duty implications if its in all three names and then I use cash from the estate post probate completion to buy my sisters out?

SDLT_Geek

 It might well have saved you stamp duty land tax to have allocated out the assets from the estate in a different way. If there is cash in addition to the property, then it can be worth appropriating to your sisters the cash, with you being appropriated a correspondingly larger in the house.
That would mean that there would be smaller shares left in the house for you to buy out, so a smaller payment on which stamp duty land tax would bite. 

xylophone

You could consider a Variation of the will such that you are left the house and your sisters the cash?
https://www.gov.uk/alter-a-will-after-a-death

greatcrested

I would ask the LR if you can withdraw the current application.

There's a LR thread here where a LR rep replies.

Or call their help line number.